«SuperTrend»: indicator for your profit
- VFX Blog
We continue to trade with trend - this is the most profitable option of how to make money on binary options. Classic technical analysis indicators continue to make profit on all assets, but their modifications are also a good option as in the "SuperTrend" strategy.
Timeframe: Any in the range M1-M5. In our case, M1 is used, but with an increasing period of analysis, the accuracy of the signal an increasing.
Trading asset: Any currency pair. The main requirement is a fixed (2-3 points) spread and no hidden fees.
Trading time: All Forex trading sessions.
Percentage premium option: Not less than 70-75%.
The strategy uses two technical indicators.
SuperTrend. Calculates current support and resistance levels based on the Average True Range or ATR indicator. The larger it is the closer trend reversal. To adjust for the current volatility, use the «Multiplier» parameter; for most currency pairs it is recommended to leave the base value.
OsMA (Moving Average of Oscillator). A variant of the MACD oscillator. The main line of «classic» MACD works as an oscillator, the signal line smoothes final result, removing the market «noise». The strategy is used to confirm a rebound from SuperTrend trading binary signals and the general direction of the trend without the need to analyze higher timeframes;
After installing the tools, the terminal's working window looks like this:
- CALL- option. The price is turning up from the lower SuperTrend border, OsMA is growing or above the zero level;
- PUT- option. Opposite conditions: the price goes down from upper SuperTrend border, OsMA goes down or below zero line.
- The movement of OsMA near midline is considered a period of «internal flat», in this situation, it is not necessary to open a deal even if the price starts moving from the SuperTrend boundaries. Most likely, this is only an impulse, after which a sideways movement can begin.
- During the publication of important fundamental news and statistics, we do not open options 30 minutes before the news and 30 minutes after the publication; cautious traders can close current deals. To control the events, we use the economic calendar included in the all popular binary trading platform!
- If the broker makes it possible to close the option before on expiration, we do it (even if it in profit!) at the emergence of an opposite signal